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ACC Ltd Q4 net profit down -29.55% at Rs396.31cr on sharp spike in power, fuel and input costs

19 Apr 2022 , 07:28 PM

ACC Ltd reported 3.14% growth in total sales revenues for the Mar-22 quarter on consolidated basis at Rs4,426.54cr. On a sequential basis, the revenues were up by 4.75%.

In terms of top line of verticals, the sales of cement business grew by 3.04% at Rs4,102cr in Mar-22 quarter. The sales of ready mix concrete (RMC) grew by 9.96% at Rs395.6cr in the fourth quarter.

The company has a penalty of Rs1,146cr pending against them based on an order issued by the CCI, but ACC is confident of coming out unscathed.

For the Dec-21 quarter, the consolidated operating profits were down -32% at Rs488.64cr. ACC has been experiencing a sharp spike in some of the key input costs like limestone, power costs, freight and forwarding costs, fuel costs etc.

The spike could not be fully passed on to consumers amidst a competitive scenario resulting in a fall in the operating profits. Operating margins fell from 16.75% in Mar-21 quarter to 11.04% in Mar-22 quarter due to operating cost pressures. However, OPM improved by 161 bps on a sequential basis.

The consolidated Profit after tax (PAT) for the Mar-22 quarter was down -29.55% at Rs396.31cr on higher input costs impacting operating margins. However, sequential net profits were up by 41.13%, but that was more on account of Rs55cr as a one-time write-off in the Dec-21 quarter to provide for restructuring costs.

PAT margins fell from 13.11% in the Mar-21 quarter to 8.95% in the Mar-22 quarter. On a sequential basis, the net profit margins were higher by 230 basis points.

Financial highlights for Mar-22 compared yoy and sequentially

	ACC Ltd
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 4,426.54	₹ 4,291.97	3.14%	₹ 4,225.76	4.75%
EBITDA (Rs cr)	₹ 488.64	₹ 718.71	-32.01%	₹ 398.54	22.61%
Net Profit (Rs cr)	₹ 396.31	₹ 562.57	-29.55%	₹ 280.81	41.13%

Diluted EPS (Rs)	₹ 21.05	₹ 29.88		₹ 14.91
EBITDA Margins	11.04%	16.75%		9.43%
Net Margins	8.95%	13.11%		6.65%